12 Free Checking Accounts to Save You Money in 2018

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Everyone loves the thought of a free checking account, but they can be much harder to find these days. Bank fees have skyrocketed over the years and many banks require you to keep a certain amount of money deposited to avoid a fee. We've found several banks still offering free checking accounts and high savings rates to help you earn a little more.

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Many people think of a bank as a safe place to hold their extra savings that gradually grows with a monthly interest payment. What many people do not realize is that their bank might actually be costing them money instead of earning money through fees. When that happens you are almost better off storing your savings underneath your mattress. Thankfully, there are many checking account options that will not cost you a dime.

Traditional Banks Don’t Only Make Money From Loan Interest

Like any other business, banks only remain in business by making a profit. They do this by lending money deposited by you the customer and charge a monthly interest payment. A portion of that interest paid is rewarded to the banking customers as the bank uses their money to underwrite these loans. The bank keeps the remaining interest to pay expenses such as salaries and the electric bill.

Another way banks make money is by charging fees for various services like ATM withdrawals or insufficient account balances. In 2016 alone, the three largest banks, J.P. Morgan Chase, Bank of America, and Wells Fargo earned $6.4 billion in banking fees!

These are some of the fees that most banks charge, although, the traditional brick and mortar banks are more likely to charge fees than online banks or your local credit union. Perhaps you have paid some of these fees yourself with your checking account.

ATM Withdrawal Fees

When you walk up to an ATM machine to make a withdrawal, your bank might not charge a fee if it’s an “in-network” machine that belongs. But, if you withdraw from an out-of-network ATM (i.e. you bank with Wells Fargo and want to withdraw from a Bank of America ATM), you might have to pay a withdrawal fee of up to $5.

Overdraft Fees

Another common fee charged by banks is an overdraft fee when you withdraw more money than is currently in your checking account. Banks will automatically transfer the difference from your savings account to complete the transaction and keep an additional $35 as an overdraft fee. To the surprise of some, the three largest banks collected $5.4 billion in overdraft fees in 2016 and were only paid by approximately 8% of their customers and overdraft at least 10 times per year.

Account Maintenance & Service Fees

One final common fee charged by traditional banks are monthly maintenance and service fees. The fee can range anywhere from a $5 to $30 each month you keep a checking or savings account open. Banks will often waive these fees if you meet specific criteria like maintaining a minimum account balance of at least $500 or $5,000, use your debit card several times each month, or enroll is Direct Deposit.

Here are some great banks that offer top savings rates for you cash!

Alternatives to a Fee-Heavy Traditional Checking Account

If you are tired of encountering a bank fee around every corner with your current checking account, it’s time to know that no-fee checking accounts do exist. Many of the account choices listed below are from online-only banks, but, others do also have physical branches for the times you still need a human bank teller to complete a cash deposit or have a document notarized.

All these free checking account options listed below offer similar features like complimentary bill pay and mobile deposits, and a mobile banking app. It’s also possible to earn interest as well. Beneath each banking option are a few highlights to help you decide which bank is your best option.

USAA has one of the most loyal followings in the finance industry. If you qualify for membership by serving in the military or an immediate relative to a servicemember, USAA free checking might be a good option.

First $15 in non-USAA network ATM fees are reimbursed monthly

Free overdraft protection when linked to a USAA savings account or credit card

Minimum $25 initial deposit

The Best Free Checking Account for You

You may have never known that so many free checking options existed. When choosing the best option for you, take into consideration how you use your checking account & how much money you keep in it on a daily basis. The best option for you might be the one with the highest interest rate or it could be one with the most generous ATM fee reimbursement policy. Either way, it’s nice to know that alternatives to fee-based checking exist.

So, what’s your favorite (and free) checking account? Help us add to the list and share it in the comments below.

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Hello, I'm Grayson!

Thanks for visiting Debt Roundup. I built this site to share the journey I took to get out of nearly $75,000 in debt. I share tips about debt, making money, saving money, investing, and much more. Take some time to learn more about me.

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